Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (2024)

What does it feel like to own land in Hawaii? Exhilarating!

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (1)

A client who recently purchased 3 acres showing his son where his future home will be.

There is something exciting about buying raw land in Hawaii that is like being at the top of the roller coaster before the first big drop. It’s a little scary and your heart beats quickly. You might say, “I can’t believe we are doing this.” Then you imagine the home and living in it and you smile from ear to ear. For those of us who have been there or are just beginning the journey, you know what I mean.

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (2)

In 2009 we are enjoying the view from our lot and making plans

Hawaii Island is the largest in the chain and has only about 200,000 people living here, yet there is shortage of housing. If you cannot find what you are looking for you may want to consider building. This may be a good option if you have time and patience to wait for the home you desire.Building here can take anywhere from 12 – 18 months once you have the lot and plans in hand. This time depends on availability of contractors, subcontractors, materials as well as the County Planning and Building Departments.

The price of land naturally varies with location. Oceanfront land in sunny locations can run as high as $1 -2 million for half an acre. For off-grid parcels in lava zone 2 (high risk) you can buy a 7,500 sq. ft. lot for $7,500. There is everything in between of course, and that’s where a Realtor comes in handy.

The cost of building in this remote part of the Pacific is higher than mainland USA. Depending on quality of materials, finishes and labor required you can spend anywhere from $200- 700 per square foot. The lower end being a straightforward modest home, and the higher being a luxury resort quality home you see in the magazines. Costs can be contained somewhat by being an owner builder. If you do this, you will need to coordinate your subcontractors and plan on this being a full-time job for the duration of construction. You must have patience, flexibility, and skills to work well with people. Having knowledge of the process and planning is a must.

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (3)

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (4)

My owner builder husband helps with framing and trusses

Building a home on vacant land here can be a uniquely rewarding process. If you would like more information on selecting, purchasing a lot and first-hand experience on building a home here, please contact me. I would be happy to share my knowledge.

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (5)

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Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (6)

Andy Gulmon

May 11, 2018

Hi Lisa,
I’m about to buy a property on the Big Island in Mountain View near hwy 11. I will need to install a septic. The property is on 3 acres. Can I assume that I can install a septic system? Has anyone ever not been allowed to put one in? How costly are they?

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (7)

Kapi'olani

August 21, 2019

I don’t agree with out side companies or even local realtors sell land here in Hawaii. I hope people understand between crown lands, government lands and land for private sale. Remember buying land here in Hawaii will always be a undivided interest. Many Kanaka Maoli are researching their rights to Kuleana.’aina. This land division was.called the great.Mahele propsed to DHHL 1920 organic act. This was made possible for all Native Hawaiians land to grow.crops and live. Always keep in mind when purchasing land in Hawaii that you.are.purchasing land on a.undivided.interest. Hawaiian concept, we malama. Aloha ‘aina. ‘Aina used to be called kaina and kiana means family. We have all these non Kanaka whi come to our home and thing this is the wild.west, where people use up all our natural resources, desecrate our land, and not to mention our sacred.places, we.are.limited.to where we can fish,.hunt.and gather. All of which is a protected Hawaiian kingdom law. Remember now, the Kingdom of Hawaii till this day still exist. The second attemt.of.5 haole sugar plantation businessmen took it upon themselves.to.skeem.and.lie

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (8)

Ray

September 21, 2019

Lisa,
Do you buy lots for development on the big island? I have two side by side lots in Nanawale that I am thinking of selling.

Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (9)

Sasha Nealand

October 24, 2020

Just a comment, I am sure you know that there are almost no pure Hawaiians left and most “Hawaiians” currently living in Hawaii are mixtures of the many races that have settled here including haole. Hawaiians are also invaders to this island, bringing with them off-island species and eradicating the native ones, the only difference between the Hawaiian invaders and later invaders ( Japanese, Portuguese, Philippine, white, whatever…) is that the Hawaiians were maybe the first invaders to be recorded , so no need to be so hostile as you are just basically saying stuff against your own ancestors ( Japanese, Portuguese, Philippine, white, whatever…)

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Buying Land on the Big Island of Hawaii - Hawaii Real Estate Market & Trends | Hawaii Life (2024)

FAQs

Are real estate prices in Hawaii dropping? ›

Hawaii Real Estate Market Statistics

17.2% of home prices dropped in March 2023- compared to just over 10% in March 2022.

What are the cons living on Big Island Hawaii? ›

  • Weather. People assume it's always sunny in Hawaii. ...
  • Natural Disasters. Lava eruptions, earthquakes, hurricanes, and tsunamis are the four most common natural disasters on the Big Island. ...
  • Far, Far Away. Hawaii is remote. ...
  • Shortage of Healthcare. ...
  • High Cost of Living. ...
  • A Sacred Connection to the Land. ...
  • Closing Thoughts.
Jan 7, 2022

How much does 1 acre of land cost in Hawaii? ›

Per-acre costs aren't everything, however. Hawaii, for example, only has the country's fourth-most expensive land on a per-acre basis. But in terms of the cost of a lot for sale, Hawaii tops the list with an incredible average price of $983,707. This is in comparison to the U.S. average of just $316,606.

Is Hawaii real estate a good investment? ›

With its limited availability, stable market, and growing vacation rental market, owning a piece of Hawaii is a solid, safe investment. Whether you're looking for a vacation home, rental property, or a long-term investment, Hawaii real estate offers something for everyone.

What is the real estate forecast for Big Island 2023? ›

Market Statistics

Big Island median sale price movement is mixed in June 2023, with the home price up 8% to $515,000 and the condo price down -2% to $600,000 from last year.

Is now a good time to buy in Hawaii? ›

Is it a good time to buy a house in Hawaii? Although real estate has always been more expensive in Hawaii than most other states, the dip in demand makes it a good time to buy right now. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal.

Where is the best place to live on the Big Island of Hawaii? ›

The four best places to use as home base for your Big Island adventures are: Hilo (the capital), Kailua Kona (outdoors!), Waimea (beaches and valleys) and Volcano Village (Jungle and volcanoes).

What is the cheapest area to live on the Big Island of Hawaii? ›

Cheapest Places to Live in Hawaii
  • Pahoa. The cheapest place to live in Hawaii is Pahoa. ...
  • Pahala. The second-cheapest place to live in Hawaii is Pahala. ...
  • Kurtistown. Kurtistown is another affordable place to live on the Big Island. ...
  • Kaunakakai. ...
  • Keaau. ...
  • Hilo. ...
  • Waianae. ...
  • Kahuku.
Jan 18, 2023

How much do you need to make to live on the Big Island of Hawaii? ›

In order to "be happy" in Hawaii in 2023, one study reports that you'll need a whopping salary of just under $200,000.

Why is Big island so cheap? ›

The Big Island is cheaper than other Hawaiian islands due to its larger size, more affordable housing options, and lower population density. It's also sees far less job opportunities due to Oahu island being the state's major economic hub. Do Hawaiians want tourists to stay away?

When you buy property in Hawaii do you own the land? ›

You as the owner have the right to use, possess, and dispose of the land in any way you wish (within the bounds of a local HOA and local laws). In Hawaii, there are some properties that are sold as leasehold. Much of the land on the islands is owned by either the State of Hawaii or the Federal Government.

How much is a downpayment on land in Hawaii? ›

The Hawaii land loan, for when you are building your dream home from the ground up. The minimum down is 25%. Loan amounts up to $1,000,000. Loan amounts greater than $1,000,000 are considered on a case by case basis and will be subject to a larger down payment.

Is retiring in Hawaii a good idea? ›

Notably, though, Hawaii was named the healthiest and happiest state seven years in a row in Gallup's National Health and Well-Being Index from 2012–2019. If you're a retiree looking to maximize your quality of life in your golden years, Hawaii is worth a look.

How much land does Mark Zuckerberg own in Hawaii? ›

Zuckerberg and wife, Priscilla Chan, paid $17 million last month for 110 acres of agricultural land on Kauai, bringing their total Hawaii property holdings to more than 1,400 acres, the Honolulu Star-Advertiser reported.

What is the most expensive Hawaiian island to live on? ›

Oahu will be the most expensive Hawaiian island on a price per square foot basis but the size of homes and lots will be much smaller than the other islands.

What is the real estate forecast for Honolulu in 2023? ›

According to two economists who study the housing markets in Hawaii and the United States, Hawai'i home sales may continue to fall as 2023 begins, but the market is likely to level out starting as early as June as interest rates remain in decline and prices balance off.

What is the average price of a house in Hawaii 2023? ›

Can you afford to buy a house in Hawaii in 2023?
CountyAvg. Closing CostsMedian Home Value
Hawaii$5,035$350,000
Honolulu$6,926$678,200
Kauai$6,306$570,700
Maui$6,710$633,500
Feb 9, 2023

Why is Hawaii so expensive right now? ›

We have among the highest income taxes and tourism taxes. Now, Hawaii also has a tax called the general excise tax, which is kind of like a sales tax, except it's on all goods and services at every step in the production process.

Does Hawaii have a housing crisis? ›

Hawaii's housing shortage has driven the median cost of a single-family home on Oahu to more than $1 million. Less than a third of households can afford to buy a single-family home, and less than half can afford to buy a condo, a recent study by the University of Hawaii Economic Research Organization found.

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